Capture the match before anything else
A 50% match on the first 6% of pay is a 50% guaranteed return on that money. No investment, no debt payoff, and no side hustle reliably beats it. If you can only afford one financial move this year, make it contributing enough to capture the full match.
Vesting schedules
Your own contributions are always yours. The match may vest over three to six years, on a cliff or graded schedule. Leaving before you vest forfeits the unvested portion — worth checking before accepting a job offer, and worth timing a resignation around if a vesting date is close.
Traditional or Roth 401(k)
Traditional reduces taxable income now and is taxed on withdrawal; Roth is the reverse. The rough rule is Roth while your rate is low (early career, low-income years) and traditional while it is high. Splitting between the two hedges against future rate changes, which is a legitimate answer when you genuinely cannot predict.
Fees deserve ten minutes of your attention
Many plans offer both an actively managed fund at 0.7% and an index fund tracking the same market at 0.04%. Over thirty years that difference typically costs six figures on a healthy balance. Open the fund lineup, sort by expense ratio, and see whether the cheaper option does the same job.
FAQ
How much will my 401(k) be worth at retirement?
On a $92,000 salary with $120,000 saved, 8% contributions plus a 50% match to 6%, and a 7% return, the balance reaches roughly $1.2M by 65. The calculator gives your exact projection.
What is the 401(k) contribution limit for 2026?
$24,500 in employee deferrals, plus an $8,000 catch-up contribution from age 50. Employer match sits on top of that and does not count toward the employee limit.
How much should I contribute to my 401(k)?
At minimum, enough to capture the full employer match. The common target is 15% of gross including the match; if you started late, 20–25% is more realistic.
Do 401(k) fees really matter?
Substantially. A one percentage point difference in annual fees typically costs around a quarter of the final balance over a full career, because the fee compounds against you every year.
How this calculator is built
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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See our editorial policy and disclaimer. Results are estimates, not advice.